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The report comprehensively explores the current state of the country’s edible oil sector and its future potential.

The report titled “Pathways and Strategies for Accelerating Growth in Edible Oils Towards the Goal of Atmanirbharta” was released by Suman Bery, Vice-Chairman, in the presence of Prof. Ramesh Chand, Member, NITI Aayog, along with senior officials from the Ministry of Agriculture & Farmers Welfare (MoA&FW), ICAR institutes, and industry players yesterday. The report was presented by Dr Neelam Patel, Senior Advisor (Agriculture), NITI Aayog.

The report highlights that over the past decades, per capita consumption of edible oil in the country has seen a dramatic rise, reaching 19.7 kg/year. This surge in demand has significantly outpaced domestic production, leading to a heavy reliance on imports to meet both domestic and industrial needs. In 2022-23, India imported 16.5 million tonnes (MT) of edible oils, with domestic production fulfilling only 40-45 per cent of the country’s requirements. This situation presents a substantial challenge to the country’s goal of achieving self-sufficiency in edible oils.

The report comprehensively explores the current state of the country’s edible oil sector and its future potential. It presents a detailed roadmap to address existing challenges, focusing on bridging the demand-supply gap and developing new approaches to attain self-sufficiency. Under a Business-As-Usual (BAU) scenario, the national supply of edible oil is projected to increase to 16 MT by 2030 and 26.7 MT by 2047.

The report considers three distinct approaches for demand forecasting to gain a multifaceted understanding of future edible oil needs: (i) ‘Static/Household Approach’ utilizing population projections and baseline per capita consumption data, assuming a short-term static pattern in consumption behavior; (ii) ‘Normative Approach’ based on the recommended healthy intake levels established by the ICMR-National Institute of Nutrition (ICMR-NIN); and (iii) ‘Behavioristic Approach’ recognizing the potential for behavioral shifts in food consumption patterns due to evolving lifestyles and dietary habits driven by increasing income levels and price fluctuations under two scenarios: in Scenario I, where consumption is capped at 25.3 kg per capita (the average of developed countries), the demand-supply gap is projected to be 22.3 MT by 2030 and 15.20 MT by 2047. In Scenario II, which considers a higher consumption level of 40.3 kg per capita (comparable to the USA), the gap widens to 29.5 MT by 2030 and 40 MT by 2047. In the BAU situation, the country’s edible oil demand will reach Scenario-I by 2028 and Scenario-II by 2038 where under the high-income growth circumstance, assuming an estimated 8 per cent annual growth, The country’s edible oil demand is expected to Scenario-I as early as 2025, a three-year advancement compared to the BAU situation and Scenario-II by 2031, seven years earlier than anticipated in the BAU situation, showcasing even higher demand due to accelerated economic growth.

The report comprehensively explores the current state

The summit was a hub for thought-provoking discussions on sustainable trade, biodiversity conservation, sustainable manufacturing, and the pivotal role of gender in sustainable supply chains.

The Sustainable Trade Summit (SUTRA) 2023, held on 16th and 17th December at Le Meridien, Gurugram, successfully concluded, leaving an indelible mark in the realm of responsible sourcing in Indian markets. This groundbreaking event, spearheaded by IDH, brought together industry leaders, policymakers, and experts to discuss and formulate solutions for the challenges faced in agri-commodity value chains, with a special focus on uplifting smallholder farmers.

The summit was a hub for thought-provoking discussions on sustainable trade, biodiversity conservation, sustainable manufacturing, and the pivotal role of gender in sustainable supply chains. SUTRA 2023 has set a precedent for future collaborations between businesses, governments, and civil societies, reinforcing the commitment to sustainable trade practices and manufacturing.

In the contemporary landscape, there has been a notable shift in perspective, underscoring the essential interconnection between business and sustainability. This transformation reflects a shared understanding among businesses, governments, and civil society organizations that the efficacy of a business hinges on the integration of sustainability at its core. This emphasis is particularly critical in the realm of agricultural commodities and their associated value chains, where a significant portion of food production is carried out by smallholder farmers.

Speaking at the event, Dr Neelam Patel, Senior Advisor at Niti Aayog, emphasized the pivotal role of the agriculture and allied sector, stating, “Agriculture is of paramount importance in India, with over 50 per cent of people depending on this sector. While Indian agricultural practices are predominantly sustainable, there is room for enhancement. The government is actively engaged in promoting sustainable agriculture through initiatives such as providing soil health cards, establishing custom hiring centres for farm machinery, and enhancing accessibility to quality seeds. Additionally, the government is championing Farmer Producer Organisation (FPO) models to bolster farmers’ bargaining power, advocating for natural farming, and facilitating training and skilling programs for farmers. It’s a collaborative effort to further refine and fortify the sustainability of our agricultural practices.”

Rajesh Agarwal, Joint Secretary at the Ministry of Commerce, said, “Every country has its unique sustainability journey and requirements. Achieving equity in this transition is crucial, and consumer awareness is key. Continuous dialogue on the sourcing of sustainable products is vital. As we strive to reach Net Zero by 2070, it’s imperative to acknowledge that we contribute 40 per cent of greenhouse gas emissions globally. This demands substantial investment and capacity building. Natural farming emerges as a strategy, and small and marginal farmers have the potential to transition towards sustainability. It’s about fostering a collaborative and voluntary transition for a sustainable future.”

Expanding on the discourse during the event, with a specific focus on the Palm oil sector, Sanjeev Asthana, CEO of Patanjali Foods, remarked, “The Palm oil landscape in India faces a significant challenge, given that 90 per cent of the Palm oil is imported. Achieving 100 per cent sustainability and traceability in the supply chain proves to be a complex undertaking. While we are implementing best practices concerning water usage and integrated pest management in our Indian plantations, the broader sector grapples with substantial challenges. To address this, it is imperative to construct a comprehensive narrative that involves active participation from all stakeholders, including Civil Society Organizations (CSOs), NGOs, and other industry players.”

Reflecting on the event, IDH India Country Director – Jagjeet Singh Kandal said, “SUTRA 2023 marks a pivotal moment in our collective journey towards sustainable and responsible sourcing in Indian markets. I am inspired by the collaborative spirit exhibited at the summit, where industry leaders, policymakers, and experts joined forces to address the challenges within agri-commodity value chains”.

The summit was a hub for thought-provoking